I have a question.. I am a new owner of a 2 Door 07 Wrangler X and I am thinking about buying a lift for it. What is the difference between a suspension lift kit and a body lift kit? And would a 3.5" lift look good or would a bigger one be better?

JK's require less lift to achieve clearance for oversized tires.
0" lift will allow up to 32" tires
2" lift will allow up to 33" tires.
3" lift will allow for 35" tires.

A JK can add just a 2" BB for anywhere b/w $120-$400 (depending on shocks).

Basically depends on your use and intentions for the vehicle. If it's for looks and the occasional trail ride a BB will do you just fine.

__________________
04 Sahara, with a lift, some stuff, and a few things, on some 33's, blah, blah, blah.
A perpetual work in progress. Too much to list, not nearly enough to matter.My RigRater Score: 387RRv1.0 with a BOA of 18.92 (and just how exactly is this going to help me over that big arse rock?)http://www.myjeepsite.com/nregas1Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut.
~ Ernest Hemingway

BudgedBoost is just a cambo that uses the stock springs and adds plastic material like spacers on top of the coils so now the coils are "longer". Most BBs come with the spacers and shocks which makes them cheaper.

So a BB would be spacers and shocks while a suspension lift would be with coils and shocks. Coils are more expensive than spacers..

Spacers..black..

You can mount bigger tires on the original rims so no you dont have to get new rims unless the tire is too tall and wide. Too big of a tire will rub parts of the body and the chassis when offroading or when turning sharply.

Oh yeah. Sorry about the BB - as Trip88 said, it means "Budget Boost". Poly coil spacer with shocks and all the needed parts. By far the easiest/quickest/cheapest "lift" modification you can do.

Wheels depend on your choice of tires and the size and backspace (moves wheel/tire away from body/frame) of your current wheels. Decide on the tires and that will dictate your wheels. But you may be just fine with certain stock rims.

__________________
04 Sahara, with a lift, some stuff, and a few things, on some 33's, blah, blah, blah.
A perpetual work in progress. Too much to list, not nearly enough to matter.My RigRater Score: 387RRv1.0 with a BOA of 18.92 (and just how exactly is this going to help me over that big arse rock?)http://www.myjeepsite.com/nregas1Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut.
~ Ernest Hemingway

What are you looking to do with your Jeep?
You can run stock wheels with 35"s, but you have to put on a wheel spacers.
33"s are about the biggest you can go with out wheel spacers our new rims.
We run our JK with out 1 3/4 lift and a 1" body lift with 35" tires and works great.

With a little lift (BB) and (perhaps a 1" BL but I'd wait on that) you should be able to run 33's on your stock rims. According to all publications about lifting a JK, 33's will have plenty of clearance with just the 2" BB. The only remaining issue with your current rims will be the backspacing and whether or not it will result in rub of the 33's when you're at full turn. At worst, you'll get rub at full turn. JK's have more stock clearance that TJ's.

__________________
04 Sahara, with a lift, some stuff, and a few things, on some 33's, blah, blah, blah.
A perpetual work in progress. Too much to list, not nearly enough to matter.My RigRater Score: 387RRv1.0 with a BOA of 18.92 (and just how exactly is this going to help me over that big arse rock?)http://www.myjeepsite.com/nregas1Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut.
~ Ernest Hemingway